The economic effects of workplace stress

Work-related stress affects the economy in several ways. It not only affects the life of the employees but also has a negative effect on companies and therefore the operation of the whole economic system.

A country of the European Union looses about 4% of itsGDP due to work related stress.

In the European Union this amount of money exceeds 500 billion euros. For companies it means that excessive stress can put back production by even 4%.

What is this amount made up of?

• Absence due to illness
• Major fluctuation, therefore high education and recruitment costs
• Increasing dissatisfaction at workplace which decreases employees’ productivity
• Decreasing effectiveness at work
• Premature retirement
• Employee actions damaging company image
• Decrease of customer satisfaction
• Potential legal redress and litigations
• Compensational costs
• High insurance costs

The following figures show that stress significantly hinders efficiency. Stress-related illnesses force the employees to long absences, and even if they go to work, often they can not perform effectively. 

Source: http://www.shrm.org/publications/hrmagazine/
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